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Apple Defends Proxy in Response to Greenlight Suit

Published on February 13, 2013by Jessica E. Lessin

Apple Inc. issued a reply to a lawsuit filed by Greenlight Capital Inc., defending a proposal on its proxy and accusing Greenlight’s founder David Einhorn of using the suit to “induce” Apple to adopt a new type of preferred stock.

In the response, filed in the U.S. District Court for the Southern District of New York Wednesday, Apple said the proxy proposal does not improperly bundle several provisions together, as Greenlight alleges. The filing states that bundling only occurs when “discrete, material proposals are combined in a manner that puts shareholders to an unfair choice.”